Thanks to the new laws that were passed last Jan. & in July, if the lien holder agrees to a short sale whether you're an investor or this is a primary residence, they CANNOT seek a deficiency judgment from you in the future.
The only thing you have cause for concern is the Mortgage Debt Forgiveness Act is not on your side. You will be taxed by the IRS at your tax rate for the negative balance forgiven.
Please do a short sale if you're upside down. If you let the home go to total foreclosure, the bank CAN issue a deficiency judgment on you.
Shoot me an email directly if you want to talk about this some more or if you'd like me to look into it for you, I don't look back on this same Trulia thread for answers posted after mine. I close short sales currently within a 300mi radius of where I live.
Realtor Since 1996
Main Street Realtor... more
Usually the 2nd gets sent to collections or charged off after either 90-180 days of non-payment. Unfortunately, there is really no way of telling if and when it will happen. I have had some clients that have not paid on their 2nd mortgages for over 6 months and their loan does not get charged off. Sometimes, they may change the servicer of the loan but that does not mean that they are sending it to collections. Please let me know if you have any additional questions as I specialize in Foreclosure & Short Sale. You may consider a short sale. Especially, because you have the California SB 458 law. Feel free to visit my website for more information www.Short-Sale-Vs-Foreclosure-Help.com.
Sara Mehrpouyan CDPE
Specializing in Short Sale & Foreclosure
Dre License #01712757... more
Foreclosures Available in Castaic Ca. 91384This weekend if you are out there looking for foreclosures the below link can help you find the exact ones that are available.Make sure you are using an experienced